May 12 (Reuters) – Activist investor Nelson Peltz’s Trian Fund Management is seeking investor backing for a bid to take fast-food chain Wendy’s private, the Financial Times reported on Tuesday, citing people familiar with the matter.
Reuters could not immediately confirm the report. Wendy’s and Trian did not immediately respond to requests for comment.
Trian held discussions with outside investors, including in the Middle East, about funding a potential takeover of Wendy’s, the FT report said.
Peltz had considered a potential takeover bid for the burger chain in 2022. In February, he said that Wendy’s stock was undervalued, adding that he had spoken with possible financing sources about potential deals, including an acquisition or other major transactions.
Peltz currently holds a 16.24% stake in Wendy’s, up from 16.09% held in July last year. The investment firm’s stake also rose to 7.85% from 7.78% in July last year.
Wendy’s said at the time its board would review any proposal from Trian Partners in line with its fiduciary duties, and said it is moving quickly on its turnaround plan to improve its U.S. operations while growing internationally.
Although the Dublin, Ohio-based company beat first-quarter profit estimates when it reported results last week, it has struggled with sales declines in the past quarters, owing to weak demand at its restaurants amid muted spending.
Wendy’s shares closed down more than 7% at $6.77 on Monday. It is currently valued at $1.29 billion, according to LSEG data, down about 19% year to date.
(Reporting by Gnaneshwar Rajan in Bengaluru; Editing by Nivedita Bhattacharjee and Rashmi Aich)
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